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FIXED STRUCTURES: One of three types of capital goods purchased with investment expenditures. Fixed structures include buildings, factories, and other capital goods that are essentially fixed to the ground. The other types of capital are equipment and inventories.
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Lesson 18: Banking | Unit 4: Regulating Banks
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Page: 20 of 24
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How are banks regulated?- First: Government regulators say do something, and if you don't do it, then you suffer the consequences--dollar fines, losing operating control to regulators, or spending a little time in jail.
- Second: Many bank regulations involve accounting procedures and practices. The FDIC and Comptroller of the Currency are the institutions that take care of these matters.
- Third: The regulations we are most concerned with are those involving reserves and deposits, which play a key role in controlling the money supply.
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MARGINAL PROPENSITY TO SAVE The proportion of each additional dollar of household income that is used for saving. The marginal propensity to save (abbreviated MPS) is another term for the slope of the saving line and is calculated as the change in saving divided by the change in income. The MPS plays a central role in Keynesian economics. It quantifies the saving-income relation, which is the flip side of the consumption-income relation, and thus it reflects the fundamental psychological law. It is also a critical to the multiplier process. A related saving measure is the average propensity to save.
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BLACK DISMALAPOD
[What's This?]
Today, you are likely to spend a great deal of time watching infomercials seeking to buy either an electric coffee pot with automatic shutoff or a brown leather attache case. Be on the lookout for crowded shopping malls.
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Okun's Law posits that the unemployment rate increases by 1% for every 2% gap between real GDP and full-employment real GDP.
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"The time to repair the roof is when the sun is shining." -- John F. Kennedy, 35th U. S. president
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MRP
Marginal Revenue Product
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